Do companies attempt to disguise their exposure to foreign corruption? Our research investigates whether U.S. companies respond to heightened regulatory risk exposure from foreign anti-corruption laws by increasing or decreasing their geographic reporting transparency regarding their underlying exposure to countries with high risk of corruption. The U.S. Foreign Corrupt Practices Act (FCPA) exposes U.S. and… Read More »
In our new paper, we conducted extensive empirical research on more than 5,000 corporate charters of new Italian companies. We aimed to test whether the law reforms of 2012-2017, mainly addressed at the LLC/GmbH-type, were successful in making Italian corporate law more amicable towards startups and venture capital contracting techniques. Our article is part of… Read More »
One of the most consequential events in any firm’s lifetime is a major acquisition. Because of their importance, mergers and acquisitions (M&A) have been researched extensively. The vast majority of research and survey papers have focused on domestic deals. However, cross-border M&A constitutes about 30% of the total number and 37% of the total volume… Read More »
The past few years have witnessed the rise of the central bank digital currency (or CBDC), with many countries exploring and testing the viability of issuing a CBDC and dissecting their political and economic implications. The current literature surrounding CBDCs focuses mainly on technical design, institutional architecture, financial inclusion benefits, macroeconomic implications, and financial stability… Read More »
Regulatory oversight is important for safeguarding investors’ interests and ensuring the efficient functioning of financial markets. However, oversight can sometimes fail due to extraordinary factors such as resource constraints and political connections. Our recent study shows that oversight failure can also occur because of reduced productivity of regulators due to severe fine particulate matter air… Read More »
China has become a major global investor and witnessed massive amounts of outward foreign direct investment (OFDI) in recent years. Prior studies have shown that OFDI can be an important channel through which Chinese firms explore market opportunities, acquire strategic assets, and exploit global network linkages. However, internationalizing Chinese firms usually face the so-called liability… Read More »
Does democracy shape international merger activity? The short answer is yes, because democratic institutions are conducive to higher-quality corporate governance. In a new paper, we examine 104,425 cross-border transactions in 58 countries from the mid-1980s and find merger flows involve acquirers from more democratic countries than their targets. This result is primarily driven by a… Read More »
The space industry is undergoing a rapid transition. This is mostly because the traditional objectives, especially observatory space missions, have given way to more commercialised exploratory goals. Recently, in addition to the significant increase in the number of private satellites orbiting earth (around 11,000), new exploratory attempts in space have included mineral mining, space tourism… Read More »
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